McDermott bags well head contract

McDermott Arabia Company Ltd. (McDermott) has received a letter of intent from Al-Khafji Joint Operations (KJO) for a contract for two integrated well head jackets.

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By  Eudore Chand Published  December 11, 2003

McDermott Arabia Company Ltd. (McDermott), a subsidiary of J. Ray McDermott SA has received a letter of intent from Al-Khafji Joint Operations (KJO), a venture between Aramco Gulf Operations Company Ltd. (AGOC) and Kuwait Gulf Oil Company (KGOC), for a turnkey engineering, procurement, construction and installation (EPCI) contract for two integrated well head jackets. The two jackets, IWJ2 and IWJ3 will be installed in the Al-Khafji oil field, approximately 40 km off the coast of Saudi Arabia. Financial terms of the contract are not being disclosed. “This award reflects our ability to undertake the full scope of engineering, procurement, fabrication and installation on a project of this nature in the Arabian Gulf,” says Hafez Aghili, vice president and general manager, J. Ray McDermott Middle East operations. “We are continuing to build our backlog on recent KJO projects and are encouraged that this is now at over US $100 million,” he added. The IWJ jackets project follows an earlier EPCI project installation of a 40 kV submarine cable, substations and gas supply facilities that McDermott performed for KJO last year, which is now in its final stage of completion. “We are currently in the final pre-commissioning and commissioning phase of the project,” says Aghili. “I am pleased to say that the project is on schedule and on budget and all efforts are being made to meet KJO’s facility shutdown schedule on the existing gathering station.” McDermott will undertake detailed engineering, procurement, fabrication, transportation, installation, testing and commissioning for the IWJ jackets project. Detailed engineering will be handled in-house at McDermott’s Jebel Ali design office. The project duration is scheduled for 15 months, with fabrication commencing in March 2004. An aggressive completion strategy has been developed to ensure that offshore installation takes place in the last quarter of 2004.

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